SBE Entertainment – Lodginghttp://lodgingmagazine.com
Official Publication of the AH&LAMon, 19 Mar 2018 14:15:30 +0000en-UShourly1https://wordpress.org/?v=4.9.4Will SBE’s Morgans Hotel Acquisition Ever Happen?http://lodgingmagazine.com/will-sbes-morgans-hotel-acquisition-ever-happen/
http://lodgingmagazine.com/will-sbes-morgans-hotel-acquisition-ever-happen/#respondThu, 10 Nov 2016 14:00:19 +0000http://lodgingmagazine.com/?p=28225Billionaire investor Ron Burkle and Sam Nazarian’s SBE Entertainment were unable to close on their acquisition of Morgans Hotel Group by the original deadline of Nov. 9, but the deal still has a shot to go through. The parties have entered into an agreement to extend the closing deadline to Nov. 30. SBE has faced a bumpy road in its attempt to purchase Morgans, the latest of which involved an unsolicited takeover bid from a ...

]]>Billionaire investor Ron Burkle and Sam Nazarian’s SBE Entertainment were unable to close on their acquisition of Morgans Hotel Group by the original deadline of Nov. 9, but the deal still has a shot to go through. The parties have entered into an agreement to extend the closing deadline to Nov. 30. SBE has faced a bumpy road in its attempt to purchase Morgans, the latest of which involved an unsolicited takeover bid from a mystery rival suitor. To read more, click here.

]]>http://lodgingmagazine.com/will-sbes-morgans-hotel-acquisition-ever-happen/feed/0SBE to Acquire Morgans for $794 Millionhttp://lodgingmagazine.com/sbe-to-acquire-morgans-for-794-million/
http://lodgingmagazine.com/sbe-to-acquire-morgans-for-794-million/#respondTue, 10 May 2016 16:20:44 +0000http://lodgingmagazine.com/?p=24805What a difference a few months make. Last November, merger discussions between Morgans Hotel Group and SBE Entertainment Group collapsed. But just yesterday it was announced that Morgans Hotel Group agreed to be purchased by Sam Nazarian’s SBE for $2.25 a share in cash—a per-share price 69 percent higher than Morgans’ May 5 closing price. The total enterprise is valued at about $794 million. SBE, with the SLS, Hyde, and Redbury hotels under its umbrella, will ...

]]>What a difference a few months make. Last November, merger discussions between Morgans Hotel Group and SBE Entertainment Group collapsed. But just yesterday it was announced that Morgans Hotel Group agreed to be purchased by Sam Nazarian’s SBE for $2.25 a share in cash—a per-share price 69 percent higher than Morgans’ May 5 closing price. The total enterprise is valued at about $794 million. SBE, with the SLS, Hyde, and Redbury hotels under its umbrella, will acquire all Morgans’ brands in the deal. This purchase gives Morgans a needed jump in shares—after falling 68 percent in the past 12 months, shares for the company jumped 10 percent yesterday. This deal puts an equity value on Morgans of about $82 million. To read more, click here.

]]>http://lodgingmagazine.com/sbe-to-acquire-morgans-for-794-million/feed/0SBE Entertainment, Morgans Hotel Group Negotiations Collapsehttp://lodgingmagazine.com/sbe-entertainment-morgans-hotel-group-negotiations-collapse/
http://lodgingmagazine.com/sbe-entertainment-morgans-hotel-group-negotiations-collapse/#respondWed, 04 Nov 2015 20:45:55 +0000http://lodgingmagazine.com/?p=21583Following months of negotiations, merger discussions between Morgans Hotel Group and SBE Entertainment Group have collapsed, reports The Wall Street Journal. The two parties involved were Ronald Burkle, a preferred equity holder in Morgans, who was in support of the merger. Jason Kalisman, a Morgans board member whose investment firm OTK Associates is the largest shareholder, believed the company was giving away too much to Burkle. Burkle was set to become chairman of the combined ...

The two parties involved were Ronald Burkle, a preferred equity holder in Morgans, who was in support of the merger. Jason Kalisman, a Morgans board member whose investment firm OTK Associates is the largest shareholder, believed the company was giving away too much to Burkle. Burkle was set to become chairman of the combined company, and would have acquired two Morgans hotels as part of the deal.

According to the article, Burkle said he would not agree to a deal without full board approval.

]]>http://lodgingmagazine.com/sbe-entertainment-morgans-hotel-group-negotiations-collapse/feed/0SBE in Talks to Merge with Morgans Hotel Grouphttp://lodgingmagazine.com/sbe-in-talks-to-merge-with-morgans-hotel-group/
http://lodgingmagazine.com/sbe-in-talks-to-merge-with-morgans-hotel-group/#respondFri, 07 Aug 2015 17:03:29 +0000http://lodgingmagazine.com/?p=19952SBE, the hospitality, lifestyle, and real estate development company led by Sam Nazarian, is nearing an agreement to merge with Morgans Hotel Group, The Wall Street Journal reports. According to people familiar with the matter, Nazarian is expected to assume the role of CEO of the combined company. Billionaire private equity investor Ronald Burkle, who owns preferred equity in Morgans, will have a board seat with the new firm, the sources said. The new entity ...

]]>SBE, the hospitality, lifestyle, and real estate development company led by Sam Nazarian, is nearing an agreement to merge with Morgans Hotel Group, The Wall Street Journal reports. According to people familiar with the matter, Nazarian is expected to assume the role of CEO of the combined company. Billionaire private equity investor Ronald Burkle, who owns preferred equity in Morgans, will have a board seat with the new firm, the sources said. The new entity would manage 19 hotels in cities like Los Angeles, New York, Miami, and London and would include the hotel brands SLS, Delano, and Mondrian. A deal could surface as early as this month, the article states.

]]>http://lodgingmagazine.com/sbe-in-talks-to-merge-with-morgans-hotel-group/feed/0SBE Forms Real Estate Development Businesshttp://lodgingmagazine.com/sbe-forms-real-estate-development-business/
http://lodgingmagazine.com/sbe-forms-real-estate-development-business/#respondWed, 10 Jun 2015 14:44:56 +0000http://lodgingmagazine.com/?p=18924LOS ANGELES—SBE, the Los Angeles-based hospitality company that develops, manages, and operates hotels, restaurants, and nightclubs, announced the formation of an international real estate development subsidiary, Dakota Development. The Dakota team, which has developed more than 80 projects for SBE, is now offering its planning, design, development, and construction-management services to developers, lenders, and other financial institutions. Dakota is also forming a new single-family residential division that will purchase, build, and reposition high-end estates. This ...

]]>LOS ANGELES—SBE, the Los Angeles-based hospitality company that develops, manages, and operates hotels, restaurants, and nightclubs, announced the formation of an international real estate development subsidiary, Dakota Development.

The Dakota team, which has developed more than 80 projects for SBE, is now offering its planning, design, development, and construction-management services to developers, lenders, and other financial institutions.

Dakota is also forming a new single-family residential division that will purchase, build, and reposition high-end estates. This builds on the experience Dakota has in adding in condominiums and villas at several of SBE’s hotel and resort properties.

“Making Dakota a separate platform allows us to unlock the inherent value in one of the most dynamic and sought-after divisions of our company,” said Sam Nazarian, SBE’s founder, chairman, and chief executive. “Dakota’s services are in high demand and this gives Dakota the opportunity to expand its operations beyond SBE.”

Dakota has developed a range of design-forward properties, including SLS properties in Las Vegas, Beverly Hills, and South Beach; Redbury Hotels in Hollywood and South Beach, Katsuya by S+tarck and Cleo restaurants, and Hyde nightlife venues.

Current projects include SLS Hotels in Seattle, New York, Philadelphia, Baha Mar, Miami, Washington, D.C., Cancun, and Cabo San Lucas. Additionally, the Dakota team is rolling out SBE’s newest hotel brand, Hyde Hotels and Resorts, with more than 25 locations planned in the next five years.

The new division will continue to collaborate with industry visionaries and financial and development partners to maximize a project’s performance through smart design, efficient product delivery, and institutional-level accounting and financial reporting.

Dakota will be headed by President Joe Faust, who leads all aspects of SBE’s hotel, casino, residential, restaurant, and nightclub development operations, and has more than two decades of real estate development experience. Joining him are Vice Presidents Cameron Schmitt and Jason Cruce, who have overseen the development of every project in SBE’s portfolio for the past 10 years, which includes 16 hotels, 40 restaurants, and 24 nightclubs.

“We’re very excited to be taking the things we excel at—design-forward thinking and managing the financial aspects of big projects—and expanding beyond SBE,” Faust said. “We have a great team at Dakota, and we’re looking forward to growing this division to the next level.”

]]>http://lodgingmagazine.com/sbe-forms-real-estate-development-business/feed/0sbe Entertainment to Expand in Mexicohttp://lodgingmagazine.com/sbe-entertainment-to-expand-in-mexico/
http://lodgingmagazine.com/sbe-entertainment-to-expand-in-mexico/#respondFri, 03 Apr 2015 16:46:41 +0000http://lodgingmagazine.com/?p=17822LOS ANGELES—sbe Entertainment Group announced a major expansion into Mexico, agreeing to manage five resort hotels that will include residential units, sbe club membership units, and sbe restaurants and nightclubs. These projects will be built by Armar Group, a privately held Mexican real estate development and investment company. The first two projects will be built in Medano Beach in Cabo San Lucas and in the heart of the hotel zone in Cancun, with others to ...

]]>LOS ANGELES—sbe Entertainment Group announced a major expansion into Mexico, agreeing to manage five resort hotels that will include residential units, sbe club membership units, and sbe restaurants and nightclubs. These projects will be built by Armar Group, a privately held Mexican real estate development and investment company.

The first two projects will be built in Medano Beach in Cabo San Lucas and in the heart of the hotel zone in Cancun, with others to follow in Puerto Vallarta, Mexico City, and Punta Mita.

The first phase of the Cabo San Lucas project will feature a 200-room SLS LUX Hotel and 250 residential/sbe club membership units. It is scheduled to open in 2017. The Cancun project will feature a 150-room SLS LUX Hotel and 150 residential/sbe club membership units. It is slated to open in 2018.

“We chose sbe from a large group of potential partners because of the company’s track record in providing exciting, high-quality, and innovative experiences for its guests,” said Daniel Araf, chairman and chief executive of Armar.

The SLS Hotels in Mexico double the number of hotels that sbe plans to open in the coming years. The SLS LUX at Baha Mar in the Bahamas is opening in April 2015. Others that are opening in the next three years include SLS LUX hotels in Philadelphia, Seattle, New York City, Hollywood, and a hotel and residential complex in Miami, which has already sold out.

The deal with the Armar Group follows the return of Nazarian, sbe’s founder, who rejoined the company in March as chairman and CEO following a sabbatical. The company also announced changes to its board of directors.

“It’s great to be back at work doing what I love — growing the sbe brand and creating value for our partners,” Nazarian said. “sbe is an important part of my life and our family’s legacy. I’m eager to continue to build this company. We have some great projects in the pipeline and I’m eager to see them through to fruition.”

In December, Nazarian was granted a conditional license on a unanimous 4-0 vote by the Nevada Gaming Commission as part of the approval process for sbe’s largest property, the SLS Las Vegas, a 1,620-room hotel and casino that opened last summer.

During the first two months of 2015, sbe and its nearly 6,000 employees achieved record revenue growth. Moreover, the Nazarian family has infused sbe with additional equity and a renewed commitment to spend considerable time and resources to continue to develop sbe as a leading hospitality management company.

The sbe board of directors is now headed by Nazarian, his father Younes Nazarian, and brother David Nazarian. sbe expects to name two or three additional board members in the weeks ahead.

Three principals of Cain Hoy Enterprises have stepped down from the board of directors as part of an agreement between sbe and Cain Hoy.

“We have the utmost confidence in the Nazarian family,” said Henry Silverman, head of Cain Hoy, affiliates of which retain rights to acquire up to 20 percent of sbe.

sbe presently has 11 new projects in various stages of development, construction and negotiation. Those projects include a total of 1,893 hotel rooms and 2,230 residences.

]]>http://lodgingmagazine.com/sbe-entertainment-to-expand-in-mexico/feed/0SBE Recapitalizes at a $350 Million Valuationhttp://lodgingmagazine.com/sbe-recapitalizes-at-a-350-million-valuation/
http://lodgingmagazine.com/sbe-recapitalizes-at-a-350-million-valuation/#respondThu, 04 Dec 2014 17:36:14 +0000http://lodgingmagazine.com/?p=15663SBE and Cain Hoy Enterprises announced a strategic investment partnership following a recapitalization of SBE, which set an enterprise valuation of $350 million for the hospitality, entertainment, and real estate development company. In addition to the investment, SBE and Cain Hoy have launched S Squared, an equity real estate joint venture created to fuel the expansion of SBE’s hotel, casino, residential, and restaurant brands through asset acquisition and development. Initial capitalization of the real estate ...

]]>SBE and Cain Hoy Enterprises announced a strategic investment partnership following a recapitalization of SBE, which set an enterprise valuation of $350 million for the hospitality, entertainment, and real estate development company. In addition to the investment, SBE and Cain Hoy have launched S Squared, an equity real estate joint venture created to fuel the expansion of SBE’s hotel, casino, residential, and restaurant brands through asset acquisition and development. Initial capitalization of the real estate joint venture of more than several hundred million dollars will target assets valued of more than a billion and a half dollars over time. Investors in the recapitalization have also received rights to purchase up to 20 percent of SBE’s operating parent. Cain Hoy, a newly formed private investment company funded with permanent capital, was founded by its CEO Henry R. Silverman, most recently global head of real estate and infrastructure at Guggenheim Partners and former Cendant chief. Read the full release here.

]]>http://lodgingmagazine.com/sbe-recapitalizes-at-a-350-million-valuation/feed/0All Inclusivehttp://lodgingmagazine.com/all-inclusive/
http://lodgingmagazine.com/all-inclusive/#respondWed, 03 Oct 2012 14:59:44 +0000http://da518267-6e27-4d3a-97e0-8864892169e8Sam Nazarian compares outsourcing to a table that’s missing a leg. To maintain stability, the 37-year-old entrepreneur prefers to fill his hotels with homegrown restaurant and nightlife brands. An all-inclusive business strategy retains control of the guest experience and yields a more profitable investment, Nazarian says, which is especially attractive to developers in tier-one cities such as Los Angeles, New York, and Miami. “The fact that we have all these brands and they’re proven and ...

]]>Sam Nazarian compares outsourcing to a table that’s missing a leg. To maintain stability, the 37-year-old entrepreneur prefers to fill his hotels with homegrown restaurant and nightlife brands. An all-inclusive business strategy retains control of the guest experience and yields a more profitable investment, Nazarian says, which is especially attractive to developers in tier-one cities such as Los Angeles, New York, and Miami.

“The fact that we have all these brands and they’re proven and they’re international on their own gives us an interesting position in the market,” says Nazarian, founder and chief executive officer of Los Angeles-based hospitality company SBE Entertainment. SBE acquires, develops, and manages projects through its hotel, restaurant, nightlife, and real estate divisions. Founded in 2002, the company has 40 properties to date, with an additional 31 in development.

The past two years have been fruitful for SBE, from the summer 2010 launch of its second hotel brand, The Redbury (see “Scrappy Younger Brother”), in Hollywood, to the June opening of a South Beach location for SLS Hotels, its luxury brand that debuted in fall 2008 with the flagship property in Los Angeles. Other highpoints include the nationwide growth of its Katsuya sushi restaurants with eight locations thus far, the successful SBE-controlled West Coast expansion of New York mainstay Papaya King, the launch of Sayers Club and Greystone Manor nightlife venues in Hollywood, a new partnership with the Miami Heat to open Hyde AmericanAirlines Arena nightclub later this year, and an investment in the L.A.-based Umami Burger chain.

What was once a Southern California-centric company is evolving into a nationwide entity. SLS Hotel New York is slated to open in 2013, followed by SLS Hotel & Casino Las Vegas in 2014. In August, Nazarian traveled to China to begin international expansion of his growing empire.

A BROADER REACH
As China experiences a major boom in domestic tourism and its rapidly emerging middle class has more disposable income to spend, SBE is joining other U.S. hotel chains to push expansion in the country.

“We see this as a big piece of our growth over the next five years for SBE Entertainment and SLS Hotels,” Nazarian says, speaking from his hotel room in Shanghai.

SBE has secured a yet-to-be disclosed distribution and operation joint-venture partner in China, he says, and the company intends to announce a number of SLS Hotels within the next 12 to 18 months. “We feel we’ll have some very exciting news here in the next six months about the first SLS in mainland China, probably in Shanghai or Beijing,” Nazarian says, “and the announcement of our Hong Kong office imminently, which will give us reach to the international markets, not just in the Pan Pacific area but also India, Malaysia, Singapore, Indonesia—the whole rim.”

The Hong Kong office will handle a big piece of distribution for SBE’s brands, specifically SLS Hotels and SLS Residences. Serviced apartments and condos will give the company an opportunity to grow the brand in another hospitality category that’s both profitable and in demand, Nazarian says. “Right now we’re getting a lot of inquiries on serviced apartments,” he says. “In that net of how we’re seeing growth in the U.S. and in international markets is really the desire for the developer or the owner to see a fully synergistic product.”

For the expansion of SLS in the U.S., SBE expects to acquire a high profile asset in Miami, and is targeting New York as one of the most important cities for growth. The company is also considering markets like D.C., Chicago, Seattle, Dallas, Austin, and Houston. “I think we’re really focused on the core urban markets,” Nazarian says. “We’re not really looking to go to tier-two cities in the U.S. as of yet, but I think in the next 12 months you’ll see a huge pipeline of SLS Hotels integrated with SBE food and beverage concepts.”

Up until now, SBE has been focused on acquiring and redeveloping existing properties, but the company recently announced that it will be taking on a ground-up project for SLS Residences soon. The timing is right, Nazarian says. “We have so many brands that we can sometimes get in the front of the line because developers can deal with one operator for the majority of their needs.”

REINVENTING LUXURY
Nazarian says the industry has reached a fork in the road, as lifestyle becomes the next generation of boutique hotels. “The forefathers of our business, whether it be Hilton, Starwood, Hyatt or Marriott, are really pushing their lifestyle brands, in addition to blocking and tackling with their more well-known brands,” he says.

The success of a lifestyle property relies partly on its intangible assets, and Nazarian says food and beverage experiences are a key driver in the current landscape. Since its beginnings in 2002, SBE has settled into a position where the brands in its portfolio are mature and relevant in the lifestyle sector, he adds.

“That’s really given us the ability to have a seat at the big table with every major developer that we’re talking to, from when they’re [issuing a Request for Proposal] for a new operating company,” he says. “That’s been a really interesting growth model for us in the last 12 months.”

Whereas big hotel companies usually require brand standards, SBE has the flexibility to take a more entrepreneurial approach. “From our standpoint, there is a lot of space and noise and crowdedness in the lifestyle sector,” Nazarian says. “I think now it’s just going to be the proof in the pudding in the next two to three years of which lifestyle product actually resonates the most in this new era of lifestyle and boutique hotels and the emergence of all these new brands that are going to come out.”

SBE may not have millions of customers in its distribution channel, but Nazarian says his team has found a way to make owners and developers comfortable with what he calls its scalpel-versus-the-hammer approach. “Our scalpel goes into our customer base and we’re filling up our hotels and growing in markets and RevPAR year-over-year better than our comp set in every one of our hotels,” he says.

SBE has an exclusive agreement with French designer Philippe Starck for the creation of hotels, restaurants, and lounges in North America. Starck helped introduce the original boutique hotel design concept to the industry while working with hotelier and developer Ian Schrager to redesign the Royalton Hotel in New York City in 1988.

Starck fueled the artistic vision behind the 142-room SLS Hotel South Beach, a $45 million renovation of the former Ritz Plaza. Since opening in June, the hotel is above budget in both rate and occupancy, Nazarian says. The renovation marked Starck’s return to Miami, where he designed the Delano Hotel in 1995, and the two hotels are now neighbors.

The SLS Hotel South Beach has a single kitchen with three food and beverage outlets owned and operated by SBE. James Beard award-winning chef José Andrés, the property’s creative director of food and beverage, opened the second location of The Bazaar, which blends traditional Spanish cuisine with local Latin flavors. Andrés’ previous experience in the hotel industry includes opening Jaleo and China Poblano restaurants at The Cosmopolitan in Las Vegas.

“Jose and I have a great relationship and he’s probably one of the strong reasons why SLS Beverly Hills and Miami are where they are today from a product standpoint. His growth and our growth were parallel,” Nazarian says.

Hyde Lounge, which was already established as a nightlife destination in Los Angeles and at the Bellagio in Las Vegas, debuted its first oceanfront location, Hyde Beach, at the hotel. The property also has a Katsuya restaurant in partnership with master sushi chef Katsuya Uechi.

With plenty of successful South Beach hotels already in operation, Nazarian relied on elevated service as a differentiator. “I think people really appreciated a new design from Starck and a new comprehensive host of brands within one building that are focused on service.”

Since the opening of SLS Hotel at Beverly Hills, SBE has learned a lot from a development perspective. With the first location of any brand, Nazarian says companies cast a wide net to see what it brings in and where gaps exist in the market. SBE perceived an unaddressed market between the boutique and luxury sectors in Beverly Hills, and positioned a property to fill that need. The top-to-bottom renovation of the former Le Méridien cost $230 million, and Nazarian had to restructure the property mortgage amid a massive financing crunch.

“I’m sure a lot of people in 2006 that built a hotel for 2008 probably felt some of those same challenges,” Nazarian says. Ultimately, the project has been successful from an investment standpoint with all of the partners, he says, and the hotel is resonating with guests due to a consistent four-star food and beverage program.

Since the opening, the surrounding areas have been undergoing major construction and development of super luxury product, Nazarian says, most notably a 100-key apartment building from high-profile developer Rick Caruso, whose projects have included The Grove retail and entertainment complex in Los Angeles.

WORKS IN PROGRESS
In April, SBE and real estate investment firm Stockbridge Capital Group LLC secured $300 million in new funding for the redevelopment of the Sahara Hotel & Casino into the SLS Hotel & Casino Las Vegas. JP Morgan Securities LLC raised the funds in about a two-week period. SBE and Stockbridge had purchased the hotel and casino in 2007 with plans of turning it around, but shuttered it in May 2011 because it wasn’t economically viable.

SBE enlisted Gensler Architects and Las Vegas-based Penta Building Group to assist in the redevelopment of the property, which is slated to open in 2014. Construction is expected to begin in December, Nazarian says. This will be Starck’s first Vegas resort and largest hospitality project to date. Once complete, it will feature a mixed-use resort and casino with more than 1,600 guestrooms and suites and a collection of SBE’s signature restaurant and nightlife brands, reimagined for Vegas. This will include The Bazaar by Andrés, Katsuya by Starck, a reinvention of SBE’s original nightlife concept, Shelter, and new brands currently in development. In total, Nazarian says there will be 12 restaurants, four nightclubs, and two pools.

SBE named hospitality and gaming industry veteran Rob Oseland, formerly of Wynn Resorts, as president and chief operating officer. SBE will run all aspects of the property, including its F&B, gaming, and nightlife outlets and front- and back-of-house operations.

“The Vegas SLS will really put us in a unique space as a hospitality company. When it opens we will be the only gaming company that has a major Las Vegas Strip presence combined with a brand that has distribution into the key core urban markets of the U.S. and internationally,” Nazarian says.

The Las Vegas market has been showing a month-over-month recovery for the last two years, Nazarian says. According to the most recent data from the Las Vegas Convention and Visitors Authority, visitation in June was up 2.1 percent for the month (up 2.4 percent year-to-date) and ADR was up 8.5 percent versus last year (up 4.3 percent year-to-date). Visitor volume in 2011 rose 4.3 percent over 2010.

“I think Vegas is in need of a new idea,” Nazarian says. The last major resort and casino to open in Las Vegas was the Cosmopolitan in December 2010, and Nazarian hopes SLS Las Vegas will be the first to open in four and a half years. “There’s been a level of absorption in the market of all the new product that’s come in,” he says, “and then I think everybody else in that market will be reshuffling and reintroducing their brands and hotels.”

In July, SBE announced the acquisition of and initial development plans for SLS Hotel New York, in collaboration with Manhattan-based Moin Development. It will be a converted office building situated within Manhattan’s Park Avenue South corridor. When the redesign is completed in mid-2013, the hotel will feature 190 guestrooms and suites, and SBE’s restaurant and nightlife concepts in the lobby and on the rooftop. Following Starck’s dream world design at SLS Hotel South Beach, the SLS Hotel New York will reflect both the core DNA of the SLS brand and its Manhattan locale, and will feature an entirely new guestroom look.

New York City has one of the highest hotel occupancy rates in the country. In 2011, occupancy rates were 85 percent, compared to a national average of 60 percent. “New York is the mecca of the hotel business,” Nazarian says. “We’ve been trying to find a hotel asset site in New York for many, many years.”

The project continues the company’s skill set of adaptive reuse, taking a pre-worn 14-story building and transforming it into a product that will yield maximum return on investment and deliver positive guest experiences, Nazarian says. “Because we’re operating with all the food and beverage, the nightlife, the spa, the rooftop experience and the rooms under one management contract, we beat out a lot of suitors for this project.”

Moving ahead, the hotel platform will lead the overall growth of SBE, which is something Nazarian had hoped for since founding the company. “The hotel growth will definitely be the main driver for our business,” he says. “Really growing these amazing food and beverage concepts that have worked and are proven within them will give us the leg up in some of these scenarios.”

]]>http://lodgingmagazine.com/all-inclusive/feed/0Scrappy Younger Brotherhttp://lodgingmagazine.com/scrappy-younger-brother/
http://lodgingmagazine.com/scrappy-younger-brother/#respondMon, 01 Oct 2012 20:02:20 +0000http://bcd8b19b-a25a-4afb-ac67-c9e8d4de6f0fRedbury is the kind of place where young creatives stay up all night, write poetry, have a great meal, make love, and sleep until noon with their sunglasses on. Situated at the convergence of Hollywood and Vine in Los Angeles, the Redbury is SLS Hotels’ scrappy younger brother. Its 57 guest flats exude a warm, bohemian counter-culture vibe with design elements drawn from old-world cultures. Cleo, the hotel’s signature restaurant from SBE Executive Chef Daniel ...

]]>Redbury is the kind of place where young creatives stay up all night, write poetry, have a great meal, make love, and sleep until noon with their sunglasses on. Situated at the convergence of Hollywood and Vine in Los Angeles, the Redbury is SLS Hotels’ scrappy younger brother. Its 57 guest flats exude a warm, bohemian counter-culture vibe with design elements drawn from old-world cultures. Cleo, the hotel’s signature restaurant from SBE Executive Chef Daniel Elmaleh, serves up reasonably priced Mediterranean cuisine.

“We’re getting a lot of inquiries about Redburys,” Nazarian says. “We’re really trying to hone in on where the brand would work in other key markets, and we’re excited about potentially growing.”

Nazarian acquired the former condo building in May of 2010, and wanted to turn the property around fast. He enlisted leading photographer and director Matthew Rolston, who is most known for his photography of film, music, and TV stars, as the hotel’s creative director. “I don’t think of myself as a photographer or director anymore,” Rolston says. “I think of myself as an idea person.”

Rolston was tasked with creating a top-to-bottom concept that would cater to a younger, creative community at a lower price point than SLS Hotels while maintaining the same attention to detail that has served him so well when shooting videos and commercials. When those shoots wrapped, however, the set came down and the crew went home. At the hotel, Rolston’s stage remains up 24/7.

“It’s been a success since the day it opened the door,” Rolston says. “The concept just seems to really have caught people. Everybody that looks at the rooms says, ‘I could live here.’ That’s the first thing out of their mouth.”

To launch the hotel, Rolston worked with a team that included an architect, interior designer, graphic designer, music and scent experts, and uniform company. “I was involved in every aspect of the hotel, from the naming of the fragrance in the lobby to the scent and design of the amenities like the body lotion and liquid soap,” Rolston says. “It’s all part of a branding effort to create a complete experience.”

His style may be modern and minimal one day and maximal and ornate the next, but romance is always a unifying factor. “It’s a romantic thrill that I’m after in every project that I do,” Rolston says, “regardless of the style.”